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Chinese bubble-tea makers are considering Hong Kong IPOs, with ChaPanda recently debuting as the largest IPO of 2024 so far. However, the market struggled to digest the offering, and the stock price plummeted on the first trading day. The absence of global institutional investors in these deals has changed the IPO process, with issuers turning to their existing networks for funding and investment bankers losing their pivotal role. Despite the challenges, there are signs of positive change, with US dollar institutional investors reevaluating Hong Kong deals and an increase in the number of IPO projects launched. Chinese bubble-tea companies are following ChaPanda's footsteps to Hong Kong listings, emphasizing profitability and franchise-based business models. The article discusses the reasons why profitable companies like ChaPanda are rushing to list in the Hong Kong market. One reason is the pressure from investors, who have the right to resell their shares back to the company if certain milestones, like an IPO, are not met. Another reason is the fierce competition in the franchise model, which forces brands to aggressively vie for partnerships and sacrifice margins for growth. Additionally, companies are looking beyond China and using Hong Kong as a launching pad for branding in other Asian markets. However, Hong Kong faces challenges with liquidity and lengthy filing processes for IPOs. The article also mentions the involvement of multiple regulators and the use of variable interest entity (VIE) structures by Chinese startups. The outcome of ChaPanda's IPO journey could serve as a bar [Extracted from the article]

Chinese investment banks in Hong Kong are facing challenges due to liquidity issues in the market. However, they are optimistic about China's economic pivot and the rise of the renminbi as a fundraising currency. The Hong Kong IPO market peaked in 2021 but has since declined due to factors such as the tech crackdown and geopolitical tensions. There is potential for a resurgence in the market if startups redirect their listings from Shanghai to Hong Kong. The issue of liquidity remains a concern, but Chinese investors, including government-backed funds, have filled the void left by foreign investment banks. The Hong Kong Stock Exchange is taking steps to enhance its competitiveness, including exploring dual-listings and opening offices in London and New York. Chinese investment banks in Hong Kong, such as Haitong International, Bank of Communications International, and Everbright Holdings, have faced financial losses and need to improve risk management practices. However, there are opportunities in renminbi-denominated bonds and asset and wealth management. Despite the challenges, Hong Kong's financial sector continues to attract capital inflows and remains a significant player in the industry. [Extracted from the article]

Manycore Tech Inc., a Chinese maker of 3D design software, is planning to file for a Hong Kong initial public offering (IPO) this year to raise up to $200 million. The company has chosen CCB International Holdings Ltd. and JPMorgan Chase & Co. to handle the deal. Manycore had previously filed for a US listing in 2021 but abandoned that plan. The company operates Kujiale design software in China and Coohom for international markets. New listings in Hong Kong have seen a decrease this year compared to last year, but Chinese authorities have expressed support for industry leaders going public in Hong Kong. [Extracted from the article]

Hong Kong-based CK Infrastructure Holdings Ltd. is considering a second listing on an overseas stock exchange, potentially in London, in order to access a larger pool of investors and facilitate overseas acquisitions. The listing would not involve any fundraising, and a final decision has not been made. A UK listing could raise CKI's profile in the country and provide a currency hedge, enhancing its credibility and standing in overseas markets. However, this move is not expected to trigger similar listings by other Hong Kong-listed companies. The UK is trying to attract more companies to London following a drop in initial public offerings, and new rules allow companies listed elsewhere to list shares in London. CKI is the infrastructure arm of CK Group, and the UK is a key market for the company. CKI's prospective listing in London could help reshuffle its investor base and dilute its Hong Kong/China identity, making it easier to pursue overseas mergers and acquisitions. [Extracted from the article]

Six companies are set to begin trading in Hong Kong this week after raising a total of HK$4.31 billion ($551 million) in what is the busiest week for IPO debuts this year. This increase in listings suggests a recovery in activity in the third quarter following a slow first half. The largest company to debut is Cirrus Aircraft Ltd., an aircraft manufacturer, with an expected IPO of HK$1.5 billion. The second-largest newcomer is Chenqi Technology Ltd., a ride-hailing services firm backed by Tencent Holdings Ltd. and Guangzhou Automobile Group Co. Chenqi Technology ranked second in market share last year in China's Greater Bay Area. [Extracted from the article]

Viridian Asset Management, a new hedge fund firm led by a former portfolio manager from Segantii Capital Management, has received approval in principle from Hong Kong's securities watchdog. This approval comes as a relief for Segantii employees who are seeking alternative employment or considering starting their own hedge funds after Segantii and its founder were criminally prosecuted for alleged insider trading. Viridian is expected to receive a full license from the Securities and Futures Commission soon and plans to start trading on August 1. The firm has already secured prime brokers and is looking to participate in equity capital market deals across the region. [Extracted from the article]

Initial public offering (IPO) activity in Hong Kong is expected to improve in the second half of the year due to increased support from Beijing. The number of IPO filings in Hong Kong has risen in the past two months, while cancellations of listing applications on the mainland have tripled. China's commitment to speeding up approvals for listings outside of the mainland is positive for new share sales in Hong Kong. The tightening of stock-listing criteria in China may also lead more technology companies to choose Hong Kong for their IPOs. Despite potential challenges such as high interest rates and geopolitical issues, Hong Kong's market is expected to be more active this year. [Extracted from the article]

Urban Revivo Fashion, a Chinese fashion company, is reportedly considering an initial public offering (IPO) in Hong Kong. The company is working with advisers to potentially raise at least $100 million through a share sale. Urban Revivo, which was formed in 2006 and has over 400 stores in China, aims to rival established brands like Zara. The IPO market in Hong Kong has been slow this year, with the lowest amount of capital raised since the global financial crisis. [Extracted from the article]

Nasdaq is increasing its scrutiny of small initial public offerings (IPOs) from China and Hong Kong to prevent the wild swings that occurred after a few deals two years ago. The exchange has been asking IPO applicants from these regions questions about the identity and independence of the firms' pre-IPO investors. This increased scrutiny has lengthened the IPO process and added uncertainty and costs. Despite this, Nasdaq remains an attractive alternative for Chinese and Hong Kong firms due to its low listing threshold, cost, time required, and certainty from the disclosure-based system. [Extracted from the article]

Mario Ho's NIP Group is backed by the likes of the Wuhan government, SIG and ZhenFund, among others. [ABSTRACT FROM AUTHOR]

Xtalpi's IPO attracted cornerstone investors including firms controlled by Peter Lee, co-chairman of Hong Kong's Henderson Land; and Chinese billionaire Gong Hongjia. [ABSTRACT FROM AUTHOR]

Sunwoda Electric Vehicle Battery Co., a subsidiary of Sunwoda Electronic Co., is reportedly considering an initial public offering (IPO) in Hong Kong instead of Shenzhen due to slow approval processes for listings on mainland exchanges. The company is in discussions with advisers about a potential IPO in the coming quarters. Sunwoda EV Battery had previously applied to list on Shenzhen's ChiNext board and raised 1.65 billion yuan ($228 million) in a financing round. The parent company's shares have declined significantly, and Sunwoda EV Battery supplies batteries to automakers such as Dongfeng Motor Group and Geely Automobile Holdings. [Extracted from the article]

Sunwoda Electric Vehicle Battery Co., a subsidiary of Sunwoda Electronic Co., is reportedly considering an initial public offering (IPO) in Hong Kong instead of Shenzhen due to slow approval processes for listings on mainland exchanges. The company is in discussions with advisers about a potential IPO in the coming quarters. Sunwoda EV Battery had previously applied to list on Shenzhen's ChiNext board and raised 1.65 billion yuan ($228 million) in a financing round. The parent company, Sunwoda Electronic, has seen a decline in its shares this year. Sunwoda EV Battery supplies automakers such as Dongfeng Motor Group and Geely Automobile Holdings. [Extracted from the article]

Hedge fund firm Dymon Asia Capital is expanding its office space in Hong Kong's central business district, despite the city experiencing high office vacancies and declining rental rates. The firm has signed a lease for a larger office in the Landmark commercial complex, which can accommodate more than 70 employees. Despite the challenging real estate market, Dymon Asia Capital sees Hong Kong as a key market and plans to continue growing its team there. The move comes as Hong Kong tries to attract talent and businesses back to the city after a period of economic challenges. [Extracted from the article]

Hedge fund firm Dymon Asia Capital is expanding its office space in Hong Kong's central business district, despite the city experiencing high office vacancies and declining rental rates. The firm has signed a lease for a larger office in the Landmark commercial complex, which can accommodate more than 70 employees. Dymon's decision to expand in Hong Kong is driven by a growing pool of talent choosing to work in the city, and it remains a key market for the firm. Hong Kong has been trying to attract talent and firms back after facing challenges due to Covid-19 restrictions, geopolitical concerns, and China's economic slowdown. However, the lack of investment banking deals and a decrease in mainland Chinese companies leasing premium offices have impacted the office market in the city. Dymon plans to move into its new office in the fourth quarter of this year. [Extracted from the article]

According to Bloomberg, the risk premium of Chinese stocks has reached a level that historically leads to significant returns. The CSI 300 Index has lost about 42% from its peak in 2021, while China's bond market has extended its rally. Compared to bonds, Chinese stocks are currently very cheap, with the earnings and dividend yields of the stock benchmark surpassing long-term bond yields. Historically, when the stock-bond yield gap has reached 5.5 points or more, stocks have risen in the following 12 months with an average return of 57%. However, it is important to note that valuation alone is not enough to turn around the market, and improvements in earnings and policy support are needed. [Extracted from the article]

Convertible bond issues are becoming popular among bankers in Hong Kong as big mergers and acquisitions and initial public offerings have slowed down. Major players such as Bank of America, Barclays, Citigroup, Goldman Sachs, HSBC, JPMorgan Chase, Morgan Stanley, and UBS have helped Chinese tech companies raise a combined $9 billion through convertible bond sales. Convertible bonds are attractive because they allow companies to raise money at a premium to the current share price and at a lower coupon than traditional debt, while also being less dilutive for shareholders. This increase in convertible bond activity could potentially jumpstart dealmaking in the Asia Pacific region. [Extracted from the article]

Convertible bond issues are becoming popular among bankers in Hong Kong as mergers and acquisitions and initial public offerings have slowed down. Major players such as Bank of America, Barclays, Citigroup, Goldman Sachs, HSBC, JPMorgan Chase, and Morgan Stanley have helped Chinese tech companies raise a combined $9 billion through convertible bond sales. This trend is expected to continue and expand throughout the Asia Pacific region. Convertible bonds are attractive because they allow companies to raise money at a premium to the current share price and at a lower coupon than traditional debt, while also being less dilutive for shareholders. This increase in convertible bond activity could potentially stimulate broader dealmaking in the region. [Extracted from the article]

Ghisallo Capital Management, a hedge fund based in Boston, Massachusetts, is opening an office in Hong Kong with the assistance of former UBS banker Carlo Agostinelli. This move is notable as it is becoming increasingly rare for hedge fund firms to expand to Hong Kong. Ghisallo, which managed $3.4 billion at the end of 2023, has been involved in various investment strategies, including stock wagers, event-driven trading, credit, and global macro trading. The number of global hedge funds expanding to Hong Kong has slowed in recent years due to travel restrictions and geopolitical tensions. Ghisallo has been active in share sales in the region, participating in transactions involving companies such as SoftBank Group Corp., Berkshire Hathaway Inc., Betagro Pcl, and Swiggy. [Extracted from the article]

China is considering exempting individual investors from paying dividend taxes on Hong Kong stocks purchased through Stock Connect. Regulators in China are reviewing a proposal submitted by Hong Kong to waive the 20% tax on dividends from Hong Kong stocks bought through the link to Shanghai and Shenzhen. The aim of the proposal is to avoid double taxation and create fairer arrangements for investors in both Hong Kong and China. The decision is still pending, and there is no definite timeline for implementation. This proposal comes as Hong Kong seeks to revive its market after a decline in initial public offerings and trading volumes. The move could have a positive impact on the Hong Kong market and support high-yielding sectors such as energy and utilities. However, it is noted that high dividend Hong Kong stocks have not attracted significant attention from mainland Chinese investors in the past. [Extracted from the article]

China is considering exempting individual investors from paying dividend taxes on Hong Kong stocks bought via Stock Connect. Regulators in China are reviewing a proposal submitted by Hong Kong to waive the 20% tax on dividends from Hong Kong stocks bought through the link. The aim of the proposal is to avoid double taxation and create fairer arrangements for investors in both Hong Kong and China. A final decision has not been made, and there is no definite timeline for implementation. This proposal comes as Hong Kong seeks to revive its market after a decline in initial public offerings and trading volumes. [Extracted from the article]

Hong Kong is seeking investment from Saudi Arabia to help revive its struggling stock market. The Saudi Tadawul Group and Hong Kong Exchanges & Clearing Ltd. are co-organizing a conference to attract new investors and listings to Hong Kong. The move comes as Hong Kong faces challenges such as a decline in IPOs and geopolitical tensions. The Saudi stock market, on the other hand, has been performing well and is looking to increase foreign ownership. Hong Kong is also working on launching an ETF in Riyadh that tracks its stock indexes. [Extracted from the article]

Hong Kong Exchanges & Clearing Ltd. is expecting a resurgence in large initial public offerings (IPOs) in the city, according to its CEO Bonnie Chan. The exchange currently has 100 applicants waiting to list in Hong Kong, and recent developments have given them hope for the future. Despite a slump in IPOs and stock trading, trading has picked up recently due to supportive measures from Chinese regulators and a surge in the benchmark Hong Kong stock index. Hong Kong Exchanges & Clearing Ltd. has been working to attract business from Saudi Arabia and believes it is only a matter of time before Saudi companies list in Hong Kong and vice versa. [Extracted from the article]

Chicago-based law firm Mayer Brown LLP is planning to separate its Hong Kong office from the main firm due to increasing tensions between the US and China. The Hong Kong office will become an independent entity. This decision comes at a time when companies are facing challenges in navigating conflicts between the two largest economies. Mayer Brown's Hong Kong office, formerly known as Johnson Stokes & Master, has over 150 lawyers covering various industries. The split is also influenced by financial hurdles faced by international law firms, including the property industry slump in China. Other law firms have also reduced their presence in Asia due to similar challenges. [Extracted from the article]

China's plan to encourage leading companies to list in Hong Kong has led to a surge in the stock market, but experts remain skeptical. While the Hang Seng Index experienced significant gains, dealmakers argue that more than just words are needed to revive Hong Kong's weak IPO market. Factors such as low valuations, China's economic outlook, and foreign investor distrust of Beijing's policies continue to hinder the IPO pipeline. The decline of Hong Kong as a fundraising center has also impacted its status as a financial hub. Despite the potential for a small boom in Hong Kong IPOs in the future, the credibility gap and the multiyear slump in Chinese stock benchmarks pose challenges to the revival of IPOs. [Extracted from the article]

Chinese artificial intelligence developer Mobvoi Inc., backed by Google's parent company Alphabet Inc., had a disappointing stock debut in Hong Kong, marking the third flop in the city this week. Despite being sold near the low end of the indicated price range, the shares ended 3.2% lower. Mobvoi raised HK$321 million ($41 million), significantly lower than its target of $200 million to $300 million. The disappointing debut puts pressure on Hong Kong's equity capital market, which saw a decline in IPO proceeds last year. [Extracted from the article]

Chinese bubble-tea maker Sichuan Baicha Baidao Industrial Co., also known as Chabaidao, experienced a 27% drop in its trading debut in Hong Kong. This poor performance is attributed to concerns about competition and weak consumer sentiment in China. The disappointing start highlights the challenges Hong Kong faces in reviving investor confidence and increasing IPO activity. Chabaidao, China's third-largest maker of fresh tea drinks, raised HK$2.59 billion ($331 million) in its IPO, but its shares closed at HK$12.80, significantly lower than the IPO price of HK$17.50. The company's plunge may also impact other tea-chain operators considering IPOs. [Extracted from the article]

Chinese bubble-tea maker Sichuan Baicha Baidao Industrial Co., also known as Chabaidao, experienced a disappointing trading debut in Hong Kong, with shares plunging over 38%. Analysts attribute the poor performance to concerns about growing competition and weak consumer sentiment in China. This highlights the challenges Hong Kong faces in reviving investor confidence and increasing IPO activity. Chabaidao's listing performance is on track to be the worst for any Hong Kong IPO that raised at least $300 million since 2015. The company raised approximately $331 million in its IPO, which was Hong Kong's largest new share sale since November. [Extracted from the article]

Chabaidao, also known as Sichuan Baicha Baidao Industrial Co., experienced a 10% drop in its trading debut, indicating a decrease in demand for shares of bubble tea companies. The company, China's third-largest maker of fresh tea drinks, raised approximately $331 million in Hong Kong's largest initial public offering of the year. This decline in share performance may impact decisions by other tea chain operators to enter the market. Despite the growing popularity of bubble tea, increased competition poses a threat to weaker players in the industry. Chabaidao plans to use half of the IPO proceeds to improve operations and strengthen its supply chain. [Extracted from the article]

Chinese bubble-tea maker Chabaidao, also known as Sichuan Baicha Baidao Industrial Co., experienced a significant drop of over 31% in its trading debut in Hong Kong. This highlights the challenges faced by the financial hub in restoring investor confidence. Chabaidao raised approximately HK$2.59 billion ($331 million) in Hong Kong's largest new share sale since November. The poor debut may impact other tea chain operators considering entering the market through new share sales. The company plans to use half of the IPO proceeds to enhance operations and strengthen its supply chain. [Extracted from the article]

Chabaidao, also known as Sichuan Baicha Baidao Industrial Co., is set to make its trading debut after raising $331 million in Hong Kong's largest initial public offering of 2024. As China's third-largest maker of fresh tea drinks, Chabaidao faces competition in the bubble tea sector and its shares declined over 10% in gray-market trading. The success of Chabaidao's IPO could open the door for other tea chain operators to enter the market. Chabaidao plans to use half of the proceeds to improve operations and strengthen its supply chain. [Extracted from the article]

China's securities regulator has announced measures to support Hong Kong's position as an international financial hub. The China Securities Regulatory Commission (CSRC) will encourage Chinese companies to list in Hong Kong and loosen rules on stock trading links between the city and mainland exchanges. The CSRC will also widen the scope of eligible exchange-traded funds and include real estate investment trusts for the first time. These measures aim to help Hong Kong consolidate its status as an international financial center and promote capital market development. The CSRC's support for Chinese firms to list in Hong Kong is expected to improve the attractiveness of the IPO market and bolster liquidity. [Extracted from the article]

China's securities regulator, the China Securities Regulatory Commission (CSRC), has announced measures to support the listing of leading Chinese firms in Hong Kong. The CSRC will encourage initial public offerings (IPOs) by Chinese companies in Hong Kong and loosen rules on stock trading links between the city and mainland exchanges. The measures also include widening the scope of eligible exchange-traded funds, including real estate investment trusts, and supporting the inclusion of yuan-denominated stocks for mainland investors. The CSRC's statement emphasizes the central government's full support for Hong Kong's long-term status and advantages as an international financial center. The move aims to help Hong Kong consolidate and enhance its position as a finance hub, which has been challenged by factors such as a decline in IPOs and tighter regulatory controls. The Hong Kong Securities and Futures Commission has welcomed the CSRC's support, stating that it will improve the attractiveness of the IPO market and bolster liquidity. [Extracted from the article]

According to HSBC Holdings Plc's top investment banker, Greg Guyett, Hong Kong's IPO market is not expected to recover until the second half of this year. Guyett believes that the primary markets will not improve until there is stronger interest and flow in the secondary markets. Hong Kong's IPO market has been struggling, with proceeds reaching a two-decade low last year, and the first quarter of this year seeing a 29% decline in money raised from IPOs. However, Guyett sees growing evidence of foreign investor interest in China and remains confident in Hong Kong's position as an important financial center. HSBC is not reducing investments in its people in Hong Kong and China and plans to leverage technology to streamline operations. [Extracted from the article]

Didi Global Inc., the Chinese ride-hailing leader, reported a 55% increase in fourth-quarter revenue compared to the previous year. The company's revenue reached 49.4 billion yuan ($6.83 billion) in the fourth quarter and full-year sales rose by 37% to 192.4 billion yuan. Didi Global is planning to go public in Hong Kong this year, as it sees signs of recovery in its business since restoring its main apps to mobile stores in 2023. [Extracted from the article]

Didi Global Inc., the Chinese ride-hailing leader, saw a 55% increase in fourth-quarter revenue compared to the previous year, signaling a gradual recovery for the company. The revenue for the full year also climbed 37% to 192.4 billion yuan. Didi has been working to regain market share lost after a regulatory probe in 2021, which led to its delisting from the New York Stock Exchange. The company's CEO expressed confidence in future progress and plans to focus on core businesses and technological innovations. Didi is also planning a public listing in Hong Kong this year. [Extracted from the article]

Reddit Inc. experienced a 48% increase in its stock price during its initial public offering (IPO), as investors showed enthusiasm for the company's focus on profiting from the growth of artificial intelligence (AI). The San Francisco-based company raised $748 million in the offering, which was priced at the top of the marketed range. Reddit's IPO is the fourth largest on a US exchange in 2024, signaling a rebound in the market for first-time share sales. The company's success is expected to encourage other tech companies to move forward with their own IPO plans. [Extracted from the article]

Reddit Inc. shares experienced a slight decline after their initial public offering (IPO), where the company and its shareholders raised $748 million. The shares traded at $49.39 each, 5.1% above their opening price of $47. Reddit's market value is currently $7.85 billion, with a fully diluted valuation of over $9 billion. The IPO was led by Morgan Stanley, Goldman Sachs Group Inc., JPMorgan Chase & Co., and Bank of America Corp. Reddit's business related to artificial intelligence (AI) has garnered investor enthusiasm, as the company is allowing third parties to license access to data on the platform for AI training. Reddit has also partnered with Google to improve its AI products using Reddit data. The IPO is the fourth largest this year and reflects the market's warming trend for IPOs. Reddit reported a net loss of $91 million on revenue of $804 million in 2023. The largest shareholder of Reddit is Advance Magazine Publishers Inc., and the company's co-founder and CEO, Steve Huffman, expressed optimism about the company's growth potential. [Extracted from the article]

Hunan Chayue Cultural Industry Development Group Ltd., also known as Sexy Tea, is reportedly planning an initial public offering (IPO) in Hong Kong. China International Capital Corp. and Morgan Stanley have been chosen to work on the potential listing, which could raise a few hundred million dollars. The food and beverage sector in China, particularly targeting the middle class and younger generation, has been expanding rapidly despite the country's economic slowdown. Sexy Tea, which started in Changsha in 2013, operates over 500 stores and has recently expanded into cafes and lemon tea shops. Other bubble-tea chains, such as Sichuan Baicha Baidao Industrial Co. and Mixue Group, have also filed for Hong Kong listings. [Extracted from the article]

Hunan Chayue Cultural Industry Development Group Ltd., also known as Sexy Tea, is reportedly planning an initial public offering (IPO) in Hong Kong. China International Capital Corp. (CICC) and Morgan Stanley have been chosen to work on the potential listing, which could raise a few hundred million dollars. The size of the IPO will depend on market sentiment. Sexy Tea, a Chinese teahouse chain, has been expanding rapidly in the food and beverage sector, targeting the middle class and younger generation. The company operates over 500 stores and has recently expanded into cafes and lemon tea shops. [Extracted from the article]

Hong Kong is considering scaling back its plans to open up trading during severe weather, specifically during typhoon signal 9 or 10 alerts. This would be a departure from the city's current practice of closing operations during severe storms. The proposal is aimed at helping smaller firms that struggle to continue operations during extreme weather. However, there are concerns that this would undermine the city's goal of being a reliable market during all conditions. The final rules for the typhoon trading mechanism are still being developed, and the implementation of the new system has been delayed. [Extracted from the article]

Hong Kong's top market regulator, Tim Lui, has proposed that China lower the minimum asset requirement for investors to participate in the stock trading link with Hong Kong. Lui suggests lowering the threshold from 500,000 yuan to 100,000 yuan in order to boost liquidity and trading. This move would provide more opportunities for mainland investors and increase Hong Kong's market liquidity. Lui also recommends aligning dividend tax benefits for mainland and international investors and encouraging Chinese firms to list in Hong Kong to mitigate potential delisting risks. He emphasizes the need for a more prudent approach to regulation to restore investor confidence in the Hong Kong market. [Extracted from the article]